The government of Kazakhstan has revised the registration requirements for individuals and companies involved in crypto mining. The updated regulations come amid an ongoing crackdown on industry in the Central Asian nation, where the influx of miners has been blamed for ongoing power shortages.

Crypto miners will submit quarterly reports to the Kazakh authorities

An order by Kazakh Minister of Digital Development Bagdat Musin has expanded registration and reporting requirements for those who mint digital coins. The document obliges individual entrepreneurs and legal entities intending to mine crypto to notify regulators at least 30 days before starting their activity. The same applies to companies and people who provide services for such companies.

Cryptocurrency miners are now being asked to submit certain information, including their company’s name, registration number, and contact information, as well as their banking information and IP addresses. They must also state the energy requirements of their mining facilities, planned investments and the number of employees.

Required documents include copies of customs declarations or other proof of ownership of mining equipment, documents confirming that the people involved in the venture are residents of Kazakhstan, information on the location of the mining farm in the country, and a technical description of the process of connecting the hardware to the power grid connected.

Miners that have already started operations and their maintenance service providers are required to submit similar reports to the government for each quarter. In addition, mining companies going out of business must notify the state within ten days of ending their operations.

The new reporting requirements come as authorities in Nur-Sultan crack down on the crypto mining industry, a year after Kazakhstan became a magnet for miners amid China’s offensive against the sector. The government has targeted illegal miners, but even authorized bitcoin farms have suffered from power outages caused by the growing power deficit.

The shortages have already forced some companies to leave the country, while dozens of mining rigs have shut down this year and many are unplugged. Auditors have also sought to close tax loopholes exploited by some miners as authorities prepare to increase the tax burden on those staying in Kazakhstan and intend to tie the levy to the value of the minted digital currency.

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Bitcoin, Bitcoin Farms, Crypto, Crypto Farms, Crypto Miners, Crypto Mining, Cryptocurrencies, Cryptocurrency, Government, Kazakhstan, Miners, Mining, Registration, Regulation, Regulations, Reporting, Requirements, Rules

Do you expect more crypto miners to leave Kazakhstan after the stricter registration and reporting rules are passed? Tell us in the comment section below.

Lubomir Tasev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchen’s quote: “Being a writer is what I am, not what I do.” Along with crypto, blockchain and fintech, international politics and business are two other sources of inspiration.

photo credit: Shutterstock, Pixabay, WikiCommons

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